Knowledge Centre

Top Myths Prevalent about Bike Insurance

Published on December 12, 2019. EST READ TIME: 5 MIN

So, you have a trendy and powerful bike that you are proud of!You also know that it is important to protect yourself and your bike against financial losses in case of accidents, theft, vandalism, and so on but at same time we need to differentiate the truths from the myths. Lack of proper understanding of bike insurance may affect your decision making and can hinder financial interests. In this article, we have tried to debunk top myths about bike insurance which might help you in making a logical decision.

Myth 1: Only third party liability cover is enough

Fact: Third-party liability insurance only provides coverage for any bodily injury to the third party and any damage to third party property. Therefore any damage to your bike from natural calamities or manmade events are not covered.

Myth 2: I do not need insurance for an old bike

Fact: It is mandatory by law to have vehicle insurance whether it is old or new. You may feel that your old bike does not have much value and the cost of replacing it is very low but in case of an accident, your vehicle without insurance can cost you a lot. You may have to bear the expenses of third party damage by shelling out from your own pockets.

Myth 3: Personal as well as commercial use of the bike is covered under two-wheeler insurance

Fact: Bike insurance provides coverage for the personal usage of the bike. If you are using your bike for commercial purposes then the coverage of your bike is not included in the vehicle insurance policy. For insurance of your commercial bike, you need to a passenger carrying vehicle insurance under commercial vehicle insurance. 

Myth 5: I will lose No Claim Bonus if I transfer my policy to another insurer

Fact: NCB is like a reward which is given to the policyholder for each claim-free year. It is a substantial amount which accumulates year after year if you do not make the claim under the expiring policy. NCB can be easily transferred from one insurer to another.

Myth 6: Bike insurance premium amount depends only on the credit score

Fact: Many a time, people believe that the amount of premium depends only on the credit score.  But it is not true. Insurance premium amount depends on various factors such as age of the vehicle, make &model, registration location engine capacity , Insurance Declared Value (IDV), . A bad credit score can be detrimental for you if you want to take loans, but not for two-wheeler insurance.

Myth 7: Insurance policy covers all damages

Fact: If you caused damages while drinking and driving then it won’t be covered by the insurance policy. The insurance provider will nullify your claims for coverage.

Myth 8: Two-wheeler insurance only covers the accidents where I am not at fault

Fact: If you have insurance policy,it means that you are covered for all types of accidents but you must have a valid driving license. Comprehensive auto insurance provides coverage for your vehicle in case of mechanical faults or damage, theft, riots, terrorism, natural calamities, etc. However, if the accident occurs under the influence of drugs or alcohol then it is not covered under vehicle insurance.

Myth 9: My No Claim Bonus automatically transfers to the new owner if I sell my bike

Fact: Your NCB follows the fortune of the user but not your vehicle. NCB is a reflection of your driving skills so only you have the right to it. Even after selling your bike, you can take the full benefit of your NCB. 

Myth 10: In the event of an accident, first I have to pay and then go through the complex claim process

Fact: Whether you pay or not, your claim will be reimbursed. You can visit one of the network garages of your insurance provider and your expenses will be directly settled, so no intervention is required. If you are unable to visit a network garage then your claim will be reimbursed later.

Now that the above myths have been debunked, you can make an informed choice while buying bike insurance. Before buying the insurance you can also have a discussion with the insurance advisor to clear your doubts.

Disclaimer:The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog is written by our motor insurance expert Mukesh Kumar | Motor Insurance Expert | 30+ years of insurance industry experience

I recommend getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle. 

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